Mortgage Rates Reach 7.31%, Reaches Highest Level In Nearly 23 Years

(RTTNews) - Mortgage rates, or interest rates on home loans, jump from last week and reached highest level in almost 23 years, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage averaged 7.31 percent as of September 28, 2023, compared to last week when it averaged 7.19 percent. A year ago at this time, the 30-year FRM averaged 6.70 percent.

The 15-year fixed-rate mortgage averaged 6.72 percent, up from last week when it averaged 6.54 percent. A year ago at this time, the 15-year FRM averaged 5.96 percent.

"The 30-year fixed-rate mortgage has hit the highest level since the year 2000," said Sam Khater, Freddie Mac's Chief Economist. "However, unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory. These headwinds are causing both buyers and sellers to hold out for better circumstances."